Newbuild water charge proposals hailed as ‘a win for Waikato households’

Thursday, 26 February 2026

Proposals for a new $500 a year water services charge for all residential new builds have been welcomed by Hamilton Mayor Tim Macindoe, who said he was confident they would help ease rate hikes.

The new growth charging approach has been proposed by IAWAI, the Hamilton City and Waikato District Council’s council-controlled partnership to deliver water services.

IAWAI is proposing new water supply and wastewater growth charges of $500 per year for 25 years on all new residential builds. Commercial developments would also pay the charges based on the floor area of the development.

The approach is designed to ease the burden on existing households and limit rising water charges. Over 10 years, the charges would generate $46.3 million – money existing households won’t have to find.

The proposals are outlined in a draft 10-year water services strategy to be considered by IAWAI’s board on Friday before it goes out for public comment in early March.

Macindoe said the proposals dovetailed with his priority to reduce rates pressure.

“I remain fully committed to reducing the rates burden on Hamiltonians, without compromising the services, infrastructure and attractions that our growing city needs and values,” he said.

“This is what the public have asked for loud and clear, and we are listening.”

The proposals were also welcomed by Waikato District Council Mayor Aksel Bech.

He said the release of IAWAI’s draft shows real progress in addressing the high rate rises in recent years.

“The draft Strategy sets out a long‑term, sustainable approach to delivering drinking water and wastewater services for customers connected to water services across the Waikato District,” Bech said.

“The release of this Strategy demonstrates that we are starting to get on top of the significant cost pressures that were forecast before IAWAI was established.”

For Waikato District customers, the proposed increase in fixed charges has reduced from $364 to $142 per year. When combined with volumetric charges (based on average water use), this brings the previously forecast increase in charges down to $174*.

“While no one welcomes increases, this outcome is significantly better than what ratepayers would have faced without the decision to form a council owned water organisation,” Bech said.

“Working together through IAWAI is helping to protect affordability while still allowing us to invest in the essential water services our communities rely on.

“This is a win for Waikato households. It reduces pressure on family budgets while ensuring we meet new regulatory requirements and support future growth.

“IAWAI brings together the resources and expertise needed to deliver water services more efficiently, meet growing demand, and ensure that growth pays for growth, rather than placing an unfair burden on existing ratepayers,” Bech said.

IAWAI executive Chair Kevin Lavery said that without the new charges, IAWAI would need to fund growth projects in a different way.

It would likely mean higher water charges for local households and business plus a significant increase in development contributions, the fees paid by property developers.

“Collecting a growth charge on new builds will allow us to keep core water charges lower. That’s important in terms of affordability.”

Under IAWAI’s draft strategy, the proposed median residential annual charge for Hamilton has dropped from $265 to $174 per year – a decrease of $91 from that originally indicated.

“We are acutely conscious of financial pressures on households and businesses and we need new, fair revenue sources to buffer rising costs.

“Proposed increases over the next two years are well below those originally indicated in our Water Services Delivery Plan and are far lower than if councils had continued delivering water services,” Lavery said.